You’ll never see $70 oil again.
- Thread starter Snagglefoot
- Start date
I believe the Landman.
In a summary all the beginner frackers merged or went bankrupt, and merged again so there was some consolidation
and learned hard lessons which affects their current actions.
I know in my area there was about 5x merger/bankrupt/buyout consolidation in 8 years.
and a few more before that.
Here is one of the big ones who totally exited the local area
https://www.reuters.com/article/bus...and-shifts-back-to-natural-gas-idUSKBN2A92Z6/
here is the current big player
https://investors.eogresources.com/...mier-Utica-Asset-Increases-Regular-Dividend-5
Even the rate at which they pump a well is highly controlled to maximize total well output over time. They pump them slower than the maximum rate because they will produce more over time. These companies want to maximize returns for shareholders - that is it!
Diamonds and oil. Both artificially constricted for decades.
You mean it's not a charity? I've been lied to all these years! /S
Kestas
Staff member
I worked in a laboratory that tested field pipes used to drill oil. When oil prices went up we had an increase is business because the US was drilling more. When the prices went down we had less business. Enjoy the seesaw.
I wonder how many lenders will be willing to finance these projects and under what terms.
4wd
$50 site donor 2026
Most production rates are regulated in the US. A new well owner submits test rates to the regulator to get allowable reservoir management numbers - resource preservation and environmental concerns are the drivers behind the limits.
(Mitigates saltwater and sand production) …
(Mitigates saltwater and sand production) …
Do you remember this conversation HERE three years ago? The prevailing BITOG opinion at the time was the one thing standing between us and $1.00 gas was the (lack of) approval process in the US. I made the same arguments about global markets setting prices, refinery differences/capacities, the "energy independence con", and profit-driven decisions three years ago and encountered nothing but resistance. Many here thought US oil companies were a charity who take their instructions from one particular person in the executive branch.
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Oil futures are pricing in a US export ban already. Look at the spread on WTI vs Brent.
No one can predict the future but you clearly don’t understand how it works either.
Ya. I've said similar things many times myself. Next thing we're going to hear is people advocating for price controls on gas/diesel.
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- Mar 10, 2025
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I believe the Landman.
4wd
$50 site donor 2026
Talking to the rattlesnake lady ?
I’m going to start watching this !
I think that’s a pretty bold statement considering how much this industry fluctuates and we have no idea what the future holds.
One thing I will say however in regards to oil prices, it seems like people don’t factor in inflation with oil prices. Most think of the oil price 5,10,15,20 years ago and believe that number to mean the same thing today.
$50 oil in 2000 is about $94 today…
One thing I will say however in regards to oil prices, it seems like people don’t factor in inflation with oil prices. Most think of the oil price 5,10,15,20 years ago and believe that number to mean the same thing today.
$50 oil in 2000 is about $94 today…
It is amazing to me how many people think American oil is American oil. Or that big oil is our friend. Big oil is a for-profit business.
The world runs on oil; they have us by the short hairs.
Basic Economics teaches us the best way for the market to effectively lower prices is to find a lower cost viable alternative. A viable alternative drives competition and reduces the product's monopoly power position.
Yes, if you got $50 for a bbl in 2000, you better get $94 today. Instead, Harold Hamm at Continental was getting $60, so he sent the drilling rigs home.
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